Oregon Enterprise Zones and Business Incentives

The Standard Oregon Enterprise Zone Program offers new or expanding Oregon businesses that are locating within a designated enterprise zone a three-year property tax exemption on eligible property. The exemption period may be extended to five years for businesses that meet certain criteria, such as employee wage and hiring requirements.

Are You Eligible for the Standard Enterprise Zone Program?

Eligible property includes new buildings or structures, additions or modifications, machinery, equipment, and other personal property related to the expansion. Land and used property aren’t eligible.

Eligible business activities include manufacturing, processing, shipping, headquarter facilities, and a variety of operations that serve other organizations, such as call centers.

To qualify for the exemption, prior to commencing construction or hiring, the business must file an application and meet program requirements.

Special Enterprise Zones

Beyond the Standard Enterprise Zone program, Oregon has several other programs that target investment in Oregon’s rural and tribal communities as well strategic (large dollar or industry specific) investment in the state. The qualifications for these programs vary, but each program has an application and approval process that’s similar to the standard program. Eligible property includes new buildings or structures, additions or modifications, machinery, equipment, and other personal property related to the expansion. As with the standard program, land and used property aren’t eligible.

Special programs include the following:

  • Long Term Rural Enterprise Zone Program
  • Tribal Enterprise Zone Program
  • Rural Renewable Energy Development Zones
  • Strategic Investment Program
  • Solar Fee in Lieu of Property Tax
  • Oregon Investment Advantage
  • Business Expansion Program

Value of Incentives

The Standard Enterprise Zone Program and Special Programs can provide valuable tax savings, including:

  • Between three and five years of property tax exemption on qualified property related to the expansion (savings of 1%– 2% of assessed property value)
  • Construction-in-progress property tax exemption for up to two years while the project is under development
  • Between seven and 15 years of property tax exemption on qualified property related to an expansion qualifying for the one of the special programs
  • Corporation payroll income tax credit
  • Business income tax holiday of up to 10 years
  • Full or partial property tax exemptions for renewable energy projects
  • Cash incentives for hiring over 50 employees in Oregon

Where Are the Zones Located?

The enterprise zones cover portions of most cities and rural communities in Oregon. To see whether your business operations lie within an enterprise zone, view the interactive map provided by Business Oregon, the state’s economic development agency.

How We Can Help

Is your business currently located in or considering relocation to Oregon, or expanding an existing Oregon operation? Moss Adams can help you determine whether your operations or facilities lie in any of the state’s 68 enterprise zones. Our local professionals are well versed in the types of incentives available in each zone and can help you navigate the application process and compliance requirements.

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